The Effect of a Federal Government Shutdown on Major State Grants

Budget Brief 13-13

September 30, 2013

Summary

With just a few hours
remaining before the beginning of federal fiscal year (FY) 2014, attention has
turned to the possibility that Congress will be unable to agree to a continuing
resolution (CR) to maintain funding for the federal government. A CR is
necessary because no appropriations bills have been enacted for FY 2014. Last
week, the House passed a CR that incorporated “defunding” of the Affordable
Care Act (ACA; P.L. 111-148). In response, the Senate stripped the defunding
provision from the CR and sent it back to the House, where new language was
added to delay implementation of the ACA, and repeal its medical device tax.
The Senate rejected these provisions in its latest vote, and it is unclear how
the House will proceed.

FFIS has summarized
the impact of the House CR (H.J. Res. 59) in Budget Brief 13-12. This brief
discusses the impact of a federal government shutdown on major grant programs,
should it come to pass.